Need seen for ‘sooner rather than later’ rate cut By Andrea E. San Juan
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NALYSTS see the need for the Bangko Sentral ng Pilipinas (BSP) to deliver a rate cut sooner rather than later while inflation pressures are still within control. Union Bank of the Philippines chief economist Ruben Carlo O. Asuncion explained to the BusinessMirror that while a rate cut early in 2026 is “not strictly urgent”—with the central bank also having some room to keep rates steady—the earlier delivery of a rate cut could help support confi-
dence and domestic demand while “inflation pressures are still manageable.” Asuncion, meanwhile, explained that although inflation is the BSP’s primary mandate, “The pronounced growth slowdown is likely to feature prominently in policy deliberations since weaker demand reduces inflation risks and expands easing space.” Further, Asuncion said the central bank may still feel “some restraint” from BSP Governor Eli M. Remolona Jr.’s concern about inflation breaching 3 percent later in 2026, adding, this argues for “caution and gradualism” rather than
aggressive cuts.
‘Very little chance for a pause’
MEANWHILE, Angelo Taningco, Security Bank’s Research Head and Chief Economist, said in a televised interview on Monday that the bank sees a “very little chance” for a pause, adding: “Because in terms of the timing, the BSP, if it wants to cut further, may want to do so as early as Thursday instead of a few months after when inflation is already accelerating.” Meanwhile, Asuncion said if rates are left unchanged, such would likely “reflect a preference to assess the cumulative impact of previous
easing and to guard against upside inflation risks as price pressures are projected to rise toward the second half of the year.” Last week, BSP Governor Eli M. Remolona Jr. signaled that he would be worried when inflation goes up beyond 3 percent. “We project that it [inflation] will hover around 3 percent over the next two years. Three percent is our target. And then we have a tolerance around 3 percent, which is 1 percent on each side,” Remolona said at the General Membership Meeting of the Management Association of the See “Rate cut,” A2
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Tuesday, February 17, 2026 Vol. 21 No. 128
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PRECAST FOR PROGRESS President Ferdinand Marcos Jr. inspects precast concrete panels during a visit to the Megawide Precast Plant in Taytay, Rizal, as the government pushes advanced construction systems for its Expanded Pambansang Pabahay para sa Pilipino (4PH) Program. The use of
precast technology is being promoted to accelerate housing production while ensuring quality, cost efficiency, schedule discipline and consistency in large-scale residential developments. The event also marked the ceremonial turnover and awarding of housing units to beneficiaries under various modalities of the Expanded 4PH program, the administration’s flagship mass housing initiative aimed at addressing the country’s estimated housing backlog. Joining the President were Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling, Social Housing Finance Corp. President and CEO Federico Laxa, Pag-IBIG Fund CEO Marilene Acosta, National Housing Authority General Manager Joeben Tai, and Edgar Saavedra, chairman and CEO of Megawide. Story in A8 News, “Marcos eyes precast tech and low interest loans to hit 1 million housing goal by 2028.” NONIE REYES
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By Andrea E. San Juan @andreasanjuan
EMITTANCES remain a “key stabilizer” for the Philippine economy, but the main risk ahead is the proposed remittance tax in the United States, the Philippines’s top source of cash remittances. “The main risk ahead is the proposed US remittance tax—it won’t derail flows overnight, but higher costs could slow formal transfers and weigh on momentum over time,” Jonathan L. Ravelas, senior
adviser at Reyes Tacandong & Co. said on Monday. “Bottom line: remittances remain a strong tailwind, but we can’t take them for granted,” added Ravelas. See “Tax,” A2
CELEBRATE the Chinese New Year at your most loved SM City Butuan, as the mall delivers a maxedout celebration with curated retail and dining experiences, vibrant lion and dragon dances, and interactive activities that bring the Lunar New Year to life. SM SUPERMALLS
HIGHER ROOM RATES FAIL TO LIFT 2025 HOTEL REVENUES By Ma. Stella F. Arnaldo Special to the BusinessMirror
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ESPITE higher room rates last year, hotel revenues remained tepid as tourist arrivals continued to perform below government projections. In a presentation at a recent hospitality summit, Alfred Lay, Director for Hotel Investment Sales of Leechiu Property Consultants (LPC) showed that the average daily rate (ADR) of hotels in the country rose to P5,987 in 2025 from P5,408 in prepandemic 2019. However, revenue per available room (RevPAR) slid lower to P3,620 from P3,691 in 2019, despite lower inflation rates that could make hotel operations less costly. “[Hotel] occupancy hasn’t recovered at the same level of 2019,” Lay told the BusinessMirror, citing the 2025 average, which settled at about 60 percent, but still lower than the 68 percent rate in 2019. “Average daily rate is about the same in nominal figures but in ‘real’ terms with inflation adjustment, it is lower. So hence RevPAR hasn’t fully recovered,” he explained. The inflation rate, or the change
in prices of consumer products and services, slowed to 1.7 percent last year—a nine-year low—from 2.4 percent in 2019. Also, he said, “There has been a good number of new hotels added,” which increased the country’s total room inventory.
6.98-M arrivals in 2026?
OVERALL, Lay expressed optimism on the performance of the tourism industry, projecting visitor arrivals to rise to 6.98 million this year, using the Department of Tourism’s (DOT) new arrivals computation. Tourism Secretary Christina Garcia Frasco has said she no longer wants to give a new visitor target for the year, although under the General Appropriations Act of 2026, the DOT committed to a 6.7-million arrivals goal. Last year, the DOT claimed total visitor arrivals bumped to 6.48 million using e-travel data and additional figures supplied by the Bureau of Immigration. Under this new computation, however, DOT failed to give comparative data for 2024. Using just the e-travel data, inbound tourists actually slipped by 1.34 percent to 5.87 million last See “Revenues,” A2
Visayas leads Chinese New Year sales spike By Bless Aubrey Ogerio
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ALES of Chinese New Yearrelated products rose sharply across several regions, with the Visayas posting the strongest growth, according to data from Filipino tech startup Packworks. Using its business intelligence platform Sari IQ, Packworks found that hopia, Chinese wine and Asian noodles were among the most indemand items in sari-sari stores during the festive period, with some products recording gross merchandise value (GMV) increases of up to 36 percent. Hopia sales continued to gain momentum, with median GMV rising by 20 percent in 2025, up from a 14-percent increase in 2023. Central Visayas recorded the sharpest jump, posting a 240-percent surge in sales and a 200-percent increase in transactions last year. “This popularity reflects the region’s enduring Chinese cultural influence, particularly in Western and Central Visayas, hubs home to significant Chinese-Filipino communities such as Iloilo, which is home to approximately 14,000 Chinese-Filipinos,” Packworks said in a statement. Chinese wine also saw a significant pickup, with median GMV
climbing 36 percent in 2025 from just a 3-percent increase in 2023. Central Luzon posted consistent year-on-year sales growth of about 100 percent, while Eastern Visayas showed steady gains, rising from 72 percent in 2023 to 115 percent in 2025. “This trend highlights the intersection of Chinese influence and the local tradition of ‘tagay’ [communal drinking],” it said. Asian noodles rebounded in 2025, registering a 10-percent sales increase after a 3-percent decline the previous year. Soccsksargen led sales growth at 25 percent, driven partly by a 36-percent rise in the number of stores carrying the product. Meanwhile, Western Visayas recorded the largest increase in transactions at 25 percent. On the other hand, Central Luzon and Eastern Visayas sustained moderate growth over the three years. Holiday spending also extended to kitchen staples commonly used for festive meals. Soy sauce sales rose by 9 percent in 2025, while seasoning granules and monosodium glutamate grew by 7 percent. Cooking oil recorded a 13-percent increase in both sales and transactions. See “Sales,” A2
PESO EXCHANGE RATES n US 58.0590 n JAPAN 0.3805 n UK 79.2563 n HK 7.4283 n CHINA 8.4103 n SINGAPORE 45.9655 n AUSTRALIA 40.9955 n EU 68.9683 n KOREA 0.0403 n SAUDI ARABIA 15.4815 Source: BSP (February 16, 2026)